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By 
February 27, 2019 at 03:37 PM
Advisory firms with $500 million or more in assets under management continue to expand their market share despite their relatively low numbers. According to a new report from Cerulli Associates, these “mega teams” account for 11% of advisory practices but nearly two-thirds of total advisor-managed assets.
The growth of these mega teams is “channel-agnostic,” according to Cerulli. They include wirehouses, regional broker-dealers, independent broker-dealers, hybrid RIAs (registered with a BD and RIA) and independent RIAs.
Even within wirehouses, which still collectively manage the biggest share of client assets (35%) but are growing assets more slowly than other channels, mega teams are expanding their AUM (by 19%) while other smaller-AUM teams are “ceding assets,” according to Cerulli.
But the share of assets managed by hybrid and independent advisors, 37%, is growing at a much faster rate than the share managed by wirehouses.
The compound AUM growth by independent RIAs, for example, is three to four times that of BDs over the past one, five and 10 years, according to Cerulli. In the high-net-worth market, however, BDs have on average outperformed on asset growth.
